Comments: Few companies on earth can squeeze so much out of a single category, but a combination of being the global market leader in oral care and fixation on margin has Colgate brass smiling these days. The company’s share of the global toothpaste market continues to expand, reaching 44.8% through the first quarter of 2015. In contrast, CP’s closest competitor has just a 14.3% share. Impressive, sure, but consider these country toothpaste shares for Colgate: Brazil, 71.8%; Russia, 31.8%; India, 54.7% and China, 33.7%. Ironically, there’s room for growth in the US, as P&G’s Crest still holds the top spot with 37.3% share, compared to Colgate’s 35.3% share.

It’s the same story of dominance in the toothbrush segment, as Colgate’s global share has climbed to 33.8% during the past 20 years, while its chief competitor has seen its share drop from 26.2% to 19.7%. It’s a different tale, however, in mouthwash, where Colgate is a distant No. 2 with a 16.5% share, compared to P&G’s 40.4% share.

Yet, despite its dominance in the global oral care segment, Colgate posted a 1% decline in corporate sales last year. Net income fell 3%. Gross margin was 58.5%. Company CEO Ian Cook blamed the decline on exchange rates and divestitures, noting that organic sales rose 5% on a 3% increase in unit volume and positive pricing of 2%.

Oral care accounted for 46% of sales last year, followed by personal care (21%), home care (20%) and pet nutrition (13%). It may be based in New York, but Colgate is truly multinational; in fact, it’s biggest markets lie outside North America. By region, Latin America accounted for 28% of sales, followed by Europe-South Pacific (20%), North America (18%), Africa/Eurasia (7%).
In Latin America, sales fell 5%, but organic sales increased 9%. Consumers snapped up an array of Colgate products, including Colgate Luminous White Advanced, Colgate Total Breath Health and Colgate Maximum Cavity Protection Plus Neutrazucar toothpastes. Also Suavitel Complete fabric conditioner and Axion Goodbye Odors dish liquid contributed to volume growth throughout the region.

Sales in North America increased 1.5%, driven by a 2.5% increase in organic sales. Regional results received a boost from sales of Colgate Optic White and Colgate Total Lasting White mouthwashes, as well as Fabuloso Fiesta Orange liquid cleaner and Suavitel Fast Dry fabric conditioner.

In a review of the sustainability of its products, the company proudly notes that 70% of products were determined to be “more sustainable,” having an improvement in at least one of the following areas: responsible sourcing and raw materials, energy and greenhouse gases, water, waste, ingredient profile, packaging and social metrics.

What’s more, Colgate’s Bright Smiles, Bright Futures program has reached 800 million children around the world through 2014, with the goal of reaching 1.3 billion kids by 2020.

“In the face of challenging macroeconomic conditions worldwide, we are pleased to have started the year with solid organic sales growth and higher profitability as a percent to sales, despite significant foreign currency headwinds,” said Cook. “Where organic sales grew a strong 6.5%, despite economic challenges in certain countries.”

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